News, opinion and commentary

Shaky ground

Article Abstract:

The world's most powerful bankers and politicians gathered in Washington to discuss ways of preventing a global recession. Japan Leasing, with debts of almost 2.2 tril yen, declared bankruptcy. US Federal Reserve Board chief Alan Greenspan coordinated a $3.5 bil rescue for Long-Term Capital Management. Shares of Citibank, Barclays, Merrill Lynch and Morgan Stanley lost half of their value. These losses demonstrate the fragile state of the world's banking system.

The bitten bite back

Article Abstract:

The year 1998 was dominated by corporate mergers. Although much of these mergers benefited investors, history suggests that mergers are a serious threat to public wealth. Despite the fact that Australian companies are not as merger-happy as companies in the US and Britain, mergers between Dutsche Bank and Bankers Trust, Exxon and Mobil, and others will directly affect the Australian economy.